6 Charged With Operating $30-million Area Drug Ring

August 13, 1986|by JOANNA PONCAVAGE, The Morning Call

Two federal indictments were announced yesterday in what the FBI says may be the largest cocaine ring ever to operate in the Reading-Berks County area, dealing cocaine with a street value of up to $30 million annually.

The separate indictments, returned Aug. 4 by the federal grand jury in Philadelphia, resulted from a 15-month investigation coordinated by the FBI.

Neil Perate, 32, formerly of West Lawn, Berks County, and Martin Shifflet Jr., 39, of Elverson, Chester County, were leaders of a ring that dealt in 15 to 25 kilograms of cocaine a month and had a million-dollar credit line with Colombian sources in Florida, the FBI said yesterday.

The two were accused in a 30-count indictment that named four buyers.

Louis Pichini, assistant U.S. attorney in charge of the U.S. Justice Department Philadelphia Strike Force, said it was the largest cocaine ring to be prosecuted in the Reading-Berks County area in 13 years.

A second 12-count indictment charged Charles Orlando, 39, of Green Hills, Delaware County, with five counts of cocaine distribution and one count of conspiracy.

"Perate and Shifflet were more or less competitors with Orlando," said Pichini, "but their operation was much larger. We allege Perate and Shifflet would get cocaine from Colombian sources from Florida. We don't go into details where Orlando got his multiple kilos. But they were competing for certain drug customers."

Orlando, owner of the Post Office Restaurant in Green Hills, used his restaurant to meet other drug ring members, the indictment said, and stored cocaine in a barn near his house.

The 15-month investigation leading to the indictments was coordinated by the Lansdale and Allentown FBI field offices, said Wayne Davis, head of the Philadelphia FBI office.

The FBI said there is no apparent connection between yesterday's indictments and last week's indictments in which it was alleged a drug smuggling operation in Scranton airlifted 7 1/2 tons of cocaine from Colombia during the past six years.

Pichini said the Lansdale-Allentown investigation uncovered a conspiracy that allegedly began in January 1982 and continued through November 1985, and at its peak handled 15 to 25 kilos of cocaine a month. He said the conspiracy slacked off "when they learned about the investigation. It had a chilling effect."

Using specially equipped cars, according to the FBI, Perate and Shifflet brought cocaine to Pennsylvania and distributed it in Berks and surrounding counties. The FBI estimated they charged $41,000 to $64,000 per kilogram.

Pichini said the cocaine came to the Reading area because that was home base for Perate and Shifflet. "They used it as a staging area and then it went out to the surrounding areas, including Montgomery, Lehigh and upper Bucks counties. Some of their customers were in the Lehigh Valley area."

Shifflet owned the Apex landscaping company in Mohnton, Berks County, Pichini said. "He allegedly took his drug profits and laundered them to appear as if he had a legitimate source of income."

Shifflet is serving a two-year jail sentence for a currency smuggling conviction in Washington state. "He was caught crossing the Canadian border with $28,000 in cash," said Pichini, and allegedly was involved in a drug scheme there. He is charged with 13 counts of cocaine distribution, one count of conducting a continuing criminal enterprise and one count of conspiracy.

Perate, who also lived in Fort Lauderdale, Fla., is charged with 15 counts of cocaine distribution, one count of conducting a continuing criminal enterprise and one count of conspiracy. Still at large, he is being sought in south Florida. He faces a maximum sentence of life, and a $100,000 fine, an FBI spokesman said.

The indictment accusing Orlando said that from May 1985 to April 1986, he conspired to to sell cocaine and marijuana to Joseph Talarico of Wyomissing Hills, Berks County, and Gregory Stufflet, 36, of Reading.

Talarico and Karl Mangialardi, 27, of King of Prussia, Montgomery County, named in both indictments, were arrested yesterday morning and each charged with five counts of narcotics violations.

Stufflet was charged with three counts in both indictments. He faces a maximum sentence of up to 90 years in jail and a $225,000 fine, an FBI spokesman said.

Talarico and Stufflet were customers of both the Perate-Shifflet operation and Orlando, said Pichini.

"In the scheme of things," said Pichini, "Perate and Shifflet were right next to the importers. They were major wholesalers, and people like Talarico were directly below them."

Talarico also operated a seemingly legitimate business, J.T. Auto Reconditioning in Reading, that he allegedly used to receive and distribute cash. "Sometimes his customers would drop off their cars and money, and people he owed money to would come there for it," Pichini said.

Also charged with three counts was John Garvey, 36, of Malvern. Police are looking for Garvey and Orlando.